UK PM to urge global finance reform

Gordon Brown will use a keynote foreign policy speech later
to argue the global financial crisis has given world leaders a major
opportunity for change, reported BBC.

The PM, in his annual speech at the Lord Mayor's Banquet in
London, is expected to call for the rebuilding of the international financial
system.

He will urge countries to forge a new way of working
together that is "hard headed and progressive".

His speech will also be watched for any suggestions of possible
UK tax cuts.

Mr Brown's comments in recent days about the need for a
fiscal stimulus to boost the domestic economy have given rise to mounting
speculation about possible moves in that direction.

Ahead of a meeting of leaders of the world's 20 major
economies in the US at the weekend, Mr Brown is expected to say that recent
co-ordinated global action during the credit crisis showed the potential of a
stronger multilateralism.

He will argue that 2008 should not be remembered just for
the failure represented by the financial problems, but for the way countries
reacted and "discovered and refashioned the global power of nations
working together".

"While I see a world that is facing financial crisis
and still diminished by conflict and injustice, I also see the chance to forge
a new multilateralism that is both hard headed and progressive.

"And if we learn from our experience of turning unity
of purpose into unity of action, we can together seize this moment of change in
our world to create a truly global society," Mr Brown will say, according
to pre-released extracts of his speech.

The UK, the US and Europe are key to establishing a new
world order, he will argue.

A new financial system "based on the principles of
transparency, integrity, responsibility, sound banking practice and global
governance with co-ordination across borders", is also needed, he will
say.

This would involve "an early warning system and a
crisis prevention mechanism for the whole world", he will add.

As well as strengthening the global economy, Mr Brown will
set out another four challenges the world faces - the promotion of democracy,
the fight against terrorism, climate change and the resolution of conflicts.

Meanwhile, government sources signalled over the weekend that
some form of targeted help for those in the UK worst hit by the downturn was
under consideration - although they said no decisions had yet been taken.

The Tories unveil their own plans, aimed at dealing
specifically with unemployment, on Tuesday.

They say they would
fund tax cuts through existing spending and not - as they suspect the
government would do - through borrowing.